Professional Documents
Culture Documents
Rosie Curwen - The Psychological Contract - White Paper
Rosie Curwen - The Psychological Contract - White Paper
Many perhaps overlook the exchange agreement between employee and employer but
it is a crucial relationship warranting attention and consideration. In a business world
heralded by insecurity and transforming at an exponential rate it is vital for employers
to develop stable and effective relationships with their employees. The concept of the
psychological contract pinpoints underlying processes regarding expectations within
the employee-employer relationship. Covered in this paper is an introduction to the
notion of the psychological contract including the types, the beneficial and
detrimental consequences and its changing nature. Suggestions for how to best
manage the psychological contract follow.
Employees dont simply fall into one category and instead this grouping process
works on a continuum. Though there certainly are employees who acutely possess
either kind of contract most others fall somewhere between the transactional and
relational ends. By acknowledging the different kinds of contracts businesses are
better able to understand their employees situation and offer the most suitable
psychological contract content.
Mutuality: The extent to which the employee and employer hold similar
beliefs regarding the content of their psychological contract. In other words, if
contract terms are salient, openly discussed and agreed by both parties this
constitutes a high level of mutuality. Following on, if there exist high levels of
mutuality this tends to correspond to contract fulfillment.
the contract itself is fair and balanced, where neither side is particularly
undercut by demanding obligations then this corresponds to an aligned
contract. It is common for most individuals to seek out balanced relationships
when it comes to their employment relationship (Blau, 1964).
Reciprocity: The extent to which both parties report the obligations enacted as
equal. In short, is the opposing party meeting the same level of expectations?
If reciprocity exists then it increases the levels of contract fulfillment and
corresponding performance (Dabos & Rousseau, 2004).
Communication of contract content is key. If both parties know what the other
expects from them obligations and promises can be easily recalled and performed. It
is important that there is consistency and structure with HR and management
frameworks in order for constructive communication to flow.
Initial entry into an organisation is a crucial moment for the psychological contracts
development. Initial experiences help shape the expectations and beliefs regarding the
rest of the employment relationship. Therefore, relevant, accurate and key information
needs to be effectively portrayed to each party about what they require and expect
from the other.
Recruitment and selection processes. If the wrong person is hired for the job
then psychological contract breach is likely and quitting or termination is
probable. It is important for businesses to ensure the individual is aware of the
job requirements and the businesss outlook. Re-evaluating selection and
recruitment processes can help pinpoint weak areas and following reformation
can help ensure efficient selection of employees.
Conclusion.
Considering and communicating employee-employer expectations are vital
requirements for achieving fulfilled psychological contracts and corresponding
vibrant and effective employees. If not only for reducing turnover and inciting
valuable staff member, considering the psychological contract will likely have
positive influence on staff mentalities, welfare and overall happiness. And after all
working towards improving anyones happiness could never be considered a bad
days work.
Reference List.
Blau, P. M. (1964). Exchange and power in social life. New York: Wiley.
Chaudhry, A., Coyle-Shapiro, J. A.-M., & Wayne, S. J. (2011). A longitudinal study
of the impact of organizational change on transactional, relational, and
balanced psychological contracts. Journal of Leadership & Organizational
Studies, 18, 247-259.
Conway, N., & Briner, R. B. (2002). A daily diary study of affective responses to
psychological contract breach and exceeded promises. Journal of
Organizational Behavior, 23, 287-302.
Dabos, G. E., & Rousseau, D. M. (2004). Mutuality and reciprocity in the
psychological contracts of employees and employers. Journal of Applied
Psychology, 89(1), 52-72.
Robinson, S. L., & Rousseau, D. M. (1994). Violating the psychological contract: Not
the exception but the norm. Journal of Organizational Behavior, 12, 245-259.
Robinson, S. L. & Wolfe Morrison, E. (2000). The development of psychological
contract breach and violation: a longitudinal study. Journal of Organizational
Behavior, 21, 525-546.
Rousseau, D. (1989). Psychological and implied contracts in organizations. Employee
Responsibilities and Rights Journal, 2, 121139.
Rousseau, D. M. (1995). Psychological contract in organizations: Understanding
written and unwritten agreement. Newbury Park, CA: Sage.
Rousseau, D. M. (2011). The individual-organization relationship: The psychological
contract. In S. Zedeck (Ed.), APA handbook of industrial and organizational
psychology (pp. 191-220). Washington, DC: American Psychological
association.
Turnley, W. H., Bolino, M. C., Lester, S. W., & Bloodgood, J. M. (2003). The Impact
of psychological contract fulllment on the performance of in-role and
organizational
citizenship behaviors. Journal of Management, 29(2), 187-206.